Valuation, depreciation and the rate base

Bibliographic data

Monograph

Identifikator:: 174667931X

URN:: urn:nbn:de:zbw-retromon-119897

Document type:: Monograph

Author:: Grunsky, Carl Ewald http://d-nb.info/gnd/10180959X

Title:: Valuation, depreciation and the rate base

Edition:: 2. ed., revised and extended

Place of publication:: New York

Publisher:: Wiley

Year of publication:: 1927

Scope:: X, 500 Seiten

Digitisation:: 2021

Collection:: Economics Books

Usage license:: Get license information via the feedback formular.

Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Chapter X. Notes on the determination of the value of real estate in eminent domain proceedings and for rate-fixing purposes

Collection:: Economics Books

204 VALUATION, DEPRECIATION AND THE RATE-BASE In the case of a storage reservoir from which water may be required for an immediate high use, such as a municipal supply, and where the most profitable other use to which the reservoir land can be put is grazing, there may be a wide difference be- tween values if determined for these two purposes. And yet in such a case the fact that this particular property will sooner or later be used for water development purposes may have given it a market value that cannot be ignored when the right of eminent domain is exercised. If the public has correctly deter- mined this market value, it will lie somewhere between the value of the land for grazing and the amount which a person can afford to pay who wishes to use it for the storage of water. This does not mean that the original owner is to share the increment of special value equally with the party who is going to put the land to a special use but merely that he should share, to some extent, in the same. When the value of land for a special purpose is but little in excess of the value of the land for ordinary uses, the division of the excess might, perhaps, equitably be on the basis of an equal division between the original owner and the person who desires to acquire the land. When, however, this excess is relatively large, then it may be proper and fair to assume that the larger portion of the excess value created by the enterprise should go to the person who is ready to take the risk of a successful carry- ing out of the enterprise and this fact should not be lost sight of in estimating market value. When lands are to be taken for fortification and other similar purposes where consideration of the value expressed in money for the special purpose is not admissible, consideration should be given to the fact that the owner is forced to part with property for the good of the public and is entitled to receive for it some- what more than the price which would obtain between a willing seller and a buyer, and also to the fact that whenever the adaptability of a piece of property for a special use is gen- erally recognized, such property must have acquired greater value than other similar property not available for such use.

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